Hello traders, there is something I want to us to discuss about trading a strong currency against a weak currency (Strong and weak analysis).
For those of you hearing this for the first time, it is simply a system where you check the strongest currency amount the 28pairs for a particular period of time, and also the weakest currency among the 28pairs for a particular period of time (in my case for the last 30 days) and you pair up the strong and the weak currency together, buying/selling in the direction of the strong currency.
The problem I’ve noticed with this strategy over the years is that, buy the time you’re doing your analysis, the trend has already gone too far and is about to reverse and when you enter, you’ll be entering at the very end of the trend.
I’ve done this so many times on different time frame over the years, I’ve done the analysis on a 7days period, 10hours period, 30days period and a 3months period, the story is always the same, the pair always reverse, it seems like the strong/weak analysis always get you into the trend at a very very late period, at the end of the trend when the trend is about to reverse.
IS THERE ANYONE THAT HAS A TRADING SYSTEM THAT INVOLVE STRONG AND WEAK ANALYSIS?
HOW DO YOU TRADE WITH IT?
DO YOU CONTINUE WITH THE TREND OR YOU TRADE IT AS A REVERSAL.
